Carrefour: Jefferies cuts target price to 14 euros

(CercleFinance.com) - Broker Jefferies this morning maintains its "hold" rating on the share of the French retailer Carrefour, which lost about 38% of its value in one year.


However, its analysts have cut their target price from 16.6 euros to 14 euros (-15.7%), reducing its upside potential to around 7%.

It's almost a year to the day that Alexandre Bompard took control of the group. Indeed, Carrefour is already working on making savings that are considered as "ambitious". Jefferies also welcomes the planned partnership with the Chinese technology giant Tencent, as well as the "alliance" in purchases with Britain's Tesco. All these details bode well for the share over the medium term.

That may be so, although until now, investors have been struggling to distinguish how the group's strategy has been amended, Jefferies' report laments. Meanwhile, Carrefour is continuing to lose market share in France - particularly in the hypermarket segment. Analysts therefore expect that on 26 July, the group will publish operating income that is down 14% at 532 million euros. They have cut their target price following the 10% reduction in earnings expectations over the medium term.



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